Enjoy.

Why consider a permanent life insurance policy? Here are five reasons:

1. Money for Final Expenses: Burials are expensive, and if you’re 60 and live to be 90, that twenty-year term life insurance policy you bought from television isn’t going to be there when your loved ones have to pay for your funeral.
2. To pay off your mortgage: If you’re the sole provider for your family, your death could leave them with a mortgage and no way to pay it, especially if you bought your home at a later age than most, or refinanced it to pay for college tuition or another large expense. Permanent life insurance will ensure that there is money to pay off the home, even if your term policy hasn’t come due yet.
3. To cover estate taxes: If you’re fortunate enough to have a large estate, your family will be responsible for paying estate taxes after your death. If you purchase life insurance and put it in an ILIT (Irrevocable Life Insurance Trust), you can not only avoid leaving your heirs with a large tax bill, but also give them liquid assets with which to pay any taxes that cannot be avoided.
4. To get the most out of your pension: When you retire, you might choose to take the highest possible payout option on your pension, but still leave income for your surviving spouse after your death. Permanent life insurance offers financial protection.
5. To care for special needs children: If you have special needs children who are likely to outlive you, you’ll want to leave life insurance in place for after you’re gone. If you’re married, there’s an option called Survivorship Life Insurance which will provide for your spouse as well.

According to Andrew Edelsberg, a vice president in the life and health division of A.M. Best Co., the reason for lower term life insurance sales last year was a combination the sluggish economy and higher rates. He explained, “Term pricing generally increased as carriers were, in many cases, forced to self-fund Regulation XXX reserves as alternative solutions became relatively expensive.” Edelsberg added, “We saw an increase in whole life and universal life sales due to consumer’s demand for cash value policies, as well as universal life with no-lapse guarantees.”

Beginning in July, 2011, applicants to work at SSM Health Care will be asked if they have used tobacco products in the last six months, and those who answer yes will be removed from consideration, a report in the St. Louis Post-Dispatch said.

Chris Sutton, a spokesperson with SSM explained, “As an organization that provides health care, we want to encourage our employees to take better care of themselves and set good examples for our patients.” Sutton said that since having, “…healthier employees does mean lower health care costs…” hospitals will save money.

A report from the Centers for Disease Control and Prevention estimates that every smoker costs a corporation about $3,400 a year in lost productivity and health care costs.

SSM facilities have all been smoke-free since 2004, and current employees who smoke won’t be required to adhere to the non-smoking policy when they’re off duty.

While this new policy only applies to the SSM hospitals in Missouri, there are about 6,000 companies around the country that have also stopped hiring smokers, says the New Jersey-based National Workrights Institute, and organization dedicated to workers’ rights issues. While this practice seems discriminatory, it’s allowed under Missouri state law for certain employers, including health care providers. Officials of SSM plan to lobby for similar legislation in Illinois, Oklahoma, and Wisconsin, where they operate other facilities.

Workers’ rights groups maintain that the shift to a smoke-free work force could lead to similar bans on other unhealthy-but-still-legal behaviors like eating fast food and drinking alcohol. Some are also concerned that anti-smoking policies such as the one espoused by SSM could be punishing for low-paid employees like cafeteria workers and janitors who are addicted to nicotine.

Michael Siegel, a professor at the Boston University School of Public Health put it this way: “If enough of these companies adopt these policies and it really becomes difficult for smokers to find jobs, there are going to be consequences. Unemployment is also bad for health.”

Health care providers are at the front of the trend away from employing people who smoke. The Cleveland Clinic stopped hiring smokers four years ago, and since then, hospitals in Texas, Tennessee, Pennsylvania, Ohio, Massachusetts, Georgia and Florida have done the same.

Another Missouri hospital, St. Francis Medical Center in Cape Girardeau also has a policy against hiring smokers. Explains hospital chief executive Steve Bjelich, “We felt it was unfair for employees who maintained healthy lifestyles to have to subsidize those who do not. Essentially that’s what happens.”

One answer is mortgage protection life insurance, and it’s essentially just another kind of life insurance.

Originally, mortgage life insurance policies matched the amount of the mortgage balance, and as the balance decreased the amount of life insurance did as well. For most of us, however, it makes better sense to take out a mortgage life insurance policy equal to the original mortgage amount, but at the least expensive level term, rather than anything that decreases.

Alternatively, you can buy return of premium life insurance policies as a form of mortgage life insurance. These policies have more competitive rates and, if you keep the policy, all the premiums you’ve paid will eventually be paid back to you.

The most inexpensive form of mortgage life insurance, however, is a level premium/level benefit term policy. These policies are purchased for a specified period of time, during which the policy amount is guaranteed not to decrease and the premiums can be guaranteed not to change. Typical terms for these policies are 30, 20, or 15 years – the life of the average mortgage loan.

While mortgage protection life insurance is still sold by some banks and some agents, it’s probably a better idea to choose an insurance policy that will pay off your mortgage in case of your death, without having the insurance amount decrease, and with guaranteed lower rates.

• heavy smoking
• alcoholism
• asthma
• mental illness (including clinical depression)
• cancer
• a heart condition

The reality is that there are life insurance programs that will sell you coverage with any of these conditions, but you’ll have to do your research before you apply. Of course, you’ll probably pay a higher premium, as well.

So how do you get affordable life insurance when you have a chronic condition?

The trick is in proving that you are managing your situation. For example, if you have a drinking problem but can prove that you are an active participant in AA, that will help reduce the cost of your coverage. If you’re suffering from mental illness and can demonstrate regular therapy appointments, that, too may help reduce what you pay in life insurance premiums. The same goes for asthma – if it’s well managed, it won’t force you to be excluded from coverage.

But what about heart disease? What about cancer? While it’s true that these are “red flag” issues to insurance underwriters, they don’t always mean that you can’t be covered, or can only be covered for a lot of money. If you’re taking the recommended steps to treat your heart disease, you can still be insured for a standard rate. As for cancer, it depends on the type, stage, and treatment method, as well as the size and location of your tumor. While it’s true that some insurers won’t touch you, many will still offer coverage at a reasonable price if your cancer is treatable, and has a high survivor rate.

Bottom line? Never assume that having a chronic condition knocks you out of life insurance eligibility. Instead, use the internet to do research, ask questions, and make sure you stick to whatever medical or mental health treatments are recommended.